Severance in Washington

Washingtonseverance & layoff calculator

State law shapes how much of your severance you keep, when you can collect unemployment, and whether your employer owed you advance notice. Here’s what applies in Washington.

Top marginal tax

No state income tax

Washington has no state income tax — your severance is taxed only at the federal level (plus FICA).

WARN Act

State mini-WARN: 50+ employees

Washington layers its own WARN-style protections on top of federal law. Mini-WARN Act (SB 5525) effective July 27, 2025. Covers employers with ≥50 employees.

Unemployment max

$1,152 / week

Up to 26 weeks. Unemployment insurance runs concurrently — you can collect benefits even while severance is paid out.

PTO payout

Depends on employer policy

No statutory requirement to pay out unused PTO — check your employee handbook or offer letter for any contractual obligation.

Right to work

No

Non-right-to-work; union representation may be relevant to severance and grievance procedures.

Notes for Washington

Worth knowing

No state income tax (capital gains tax over threshold); highest UI cap nationally.

Sources: state department of labor, state department of revenue, and the U.S. Department of Labor ETA. Last verified: 2026-04.